2005 California Revenue and Taxation Code Sections 12251-12260 Article 5. Prepayments

12251.  For the calendar year 1970, and each calendar year
thereafter, insurers transacting insurance in this state and whose
annual tax for the preceding calendar year was five thousand dollars
($5,000) or more shall make prepayments of the annual tax for the
current calendar year imposed by Section 28 of Article XIII of the
California Constitution and this part, provided that no prepayments
shall be made with respect to the tax on ocean marine insurance
underwriting profit or any retaliatory tax.
12253.  Each insurer required to make prepayments shall remit them
on or before each of the dates of April 1st, June 15th, September
15th and December 15th of the current calendar year.  Remittances for
prepayments shall be made payable to the Controller and shall be
delivered to the office of the commissioner, accompanied by a
prepayment form prescribed by the commissioner.
12254.  (a) The amount of each prepayment shall be 25 percent of the
amount of the annual insurance tax liability reported on the return
of the insurer for the preceding calendar year.
   (b) In establishing the prepayment amount of an insurer who has
acquired the business of another insurer, the amount of tax liability
of the acquiring insurer reported for the preceding calendar year
shall be deemed to include the amount  of tax liability of the
acquired insurer reported for that year.
12255.  The commissioner, for good cause shown, may extend for not
to exceed 10 days the time for making a prepayment.  The extension
may be granted at any time, provided that a request therefor is filed
with the commissioner within or prior to the period for which the
extension may be granted.  Interest at the rate prescribed by Section
12631 shall be paid for the period of time for which the extension
is granted.
12256.  All amounts paid under this article, other than penalties
and interest, shall be allowed as a credit on the annual tax imposed
by Section 28 of Article XIII of the California Constitution and this
part.
12257.  If the total amount of prepayments for any calendar year
exceeds the amount of annual tax for that year, the excess shall be
treated as an overpayment of annual tax and, at the election of the
insurer, may be credited against the amounts due and payable for the
first prepayment of the following year.  Any amount of the
overpayment not so credited shall be allowed as a credit or refund
under Article 2 (commencing with Section 12977) of Chapter 7 of this
part.
12258.  Any insurer who fails to pay any prepayment within the time
required shall pay a penalty of 10 percent of the amount of the
required prepayment, plus interest at the modified adjusted rate per
month, or fraction thereof, established pursuant to Section 6591.5,
from the due date of the prepayment until the date of payment but not
for any period after the due date of the annual tax.  Assessments of
prepayment deficiencies may be made in the manner provided by
deficiency assessments of the annual tax.
12259.  The provisions of this article apply to the State
Compensation Insurance Fund as well as to private insurers.
12260.  Notwithstanding any other provision of this article, the
commissioner may relieve an insurer of its obligation to make
prepayments where the insurer establishes to the satisfaction of the
commissioner that either the insurer has ceased to transact insurance
in this state, or the insurer's annual tax for the current year will
be less than five thousand dollars ($5,000).